Gold price extends losses on weak global cues and muted demand
New Delhi-India (Nov 14) Falling for a second straight day, gold prices fell by Rs. 35 to Rs. 25,915 at the bullion market on Saturday in line with a weak global trend amid easing demand from jewellers and retailers. Silver also declined by Rs. 100 to Rs. 34,300 per kg due to reduced offtake by industrial users and coin makers.
Traders said sentiment remained bearish in line with weak trend overseas where gold traded near a five-year low as investors sold bullion-backed funds amid expectations the U.S. will increase interest rates this year.
Globally, gold fell 0.10 per cent to $1,083.90 an ounce and silver shed 0.21 per cent at $14.28 an ounce in New York in yesterday’s trade. Besides, easing demand from jewellers and retailers too dampened the sentiment, they said.
Meanwhile, government on Friday slashed import tariff value on gold and silver to $354 per 10 grams and $470 per kg, respectively, tracking weakness in global markets. For the last fortnight, the tariff value on imported gold was fixed at $373 per 10 grams and on silver it was $517 per kg.
In the national capital, gold of 99.9 and 99.5 per cent purity eased further by Rs. 35 each to trade at fresh three-month low of Rs. 25,915 and Rs. 25,765 per ten gram, respectively. It had lost Rs. 300 on Friday. Sovereign, however, remained steady at Rs. 22,200 per piece of eight gram in limited deals.
Following gold, silver ready drifted by Rs. 100 to Rs. 34,300 per kg and weekly-based delivery by Rs. 115 to Rs. 33,810 per kg. On the other hand, silver coins spurted by Rs. 1,000 to Rs. 48,000 for buying and Rs. 49,000 for selling of 100 pieces.